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China has increased an anti-dumping tax on imports of distillers' dried grains (DDGs) from the United States following a final ruling by the Ministry of Commerce.
Following an investigation launched in January 2016 at the request of China's dry corn distiller's grain industry, the Ministry of Commerce has concluded that the "dumping" of US DDGs in the Chinese market has had a negative impact on the industry.
The ministry announced on January 11 that imports of DDGs from the US would therefore face an anti-dumping duty of 42.2 to 53.7 percent for five years from January 13.
The final ruling also imposes an anti-subsidy tax of 11.2 to 12 percent on DDG imports from the US, also for five years.
China initially imposed an anti-dumping duty of 33.8 percent and an anti-subsidy tax of 10 to 10.7 percent on DDG imports from the US on September 23, 2016, following a preliminary ruling by the Ministry of Commerce.
DDGs are a byproduct of dry mill ethanol production and are used in animal feed. According to the Renewable Foods Association, US DDG exports set a new record of 12.56m metric tons in 2015, up 11 percent from 2014 and more than double the amount exported in 2009.
US DDG exports were valued at USD2.94bn in 2015, of which some 50 percent were exported to China. Exports to China increased by 31 percent last year, compared with 2014.
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